It aims to become a sustained issuer in the capital markets
Specialist buy-to-let lender Quantum Mortgages has completed its first public securitisation, just two years after its launch.
The transaction, Bletchley Park Funding 2024-1, involved £234 million in UK loans. The senior tranche was priced at 0.87% over SONIA, reflecting tight pricing for a first-time issuer.
The bonds were oversubscribed, with AAA-rated tranches receiving more than twice the coverage, with one investor highlighting the lender’s solid management track record and quality underwriting to professional, sophisticated landlords as key factors in their decision to invest.
Quantum Mortgages – named the best mortgage company to work for in the UK by Mortgage Introducer in 2023 – said the success of the deal underscores continued confidence in the UK buy-to-let sector, with strong demand from investors for these assets. The lender has indicated that this will be the first of many public deals, with plans to become a sustained issuer in the capital markets.
“We are delighted to have completed our debut securitisation, especially considering the difficult conditions for the buy to let market since we launched as a lender,” said Jason Neale (pictured left), managing director at Quantum Mortgages. “This successful transaction is testament to the exceptional quality of assets we have generated and the hard work of the entire Quantum Mortgages team who deliver our unique proposition to intermediaries and their landlord clients.”
Gautam Pandey (pictured right), capital markets and funding director at Quantum Mortgages, added that the inaugural securitisation garnered widespread interest and strong support from a diverse range of investors.
“The overwhelming response, without the need for a new issuer premium, is a testament to the confidence the market has in our vision and strategy,” Pandey said. “This achievement not only marks a significant milestone for us but boosts our plans to launch a range of innovative products in the market. Furthermore, it positions us strongly for future funding opportunities, setting a solid foundation for our ongoing growth and success.”
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